Velocity Express, a specialist in time-definite regional delivery solutions within the US, plans toexpand its international business and is looking for partnerships with logistics suppliers. The
company meanwhile reduced its losses in the fourth quarter but its revenues also dropped due tocustomer losses.The company said it is stepping up its focus on its Global Alliance initiative to capture thesignificant long-term opportunity in the worldwide marketplace. “The international express deliverymarket is a $20 billion industry, with 2.1 million shipments daily and projected annual growthrates of 10%. Strategically, it makes sense for us to partner with logistics suppliers inother countries and other segments of the logistics industry”, stated Vincent A. Wasik, Velocity’sChairman and Chief Executive Officer.
Wasik said the company has signed up Shanghai-based ALC Advisors to assist on the Asiancomponent of the alliance. “We are also in discussions with potential partners in other regions ofthe globe and other industry segments,” he added.
“Our partners will gain access to Velocity’s nationwide, ‘last-mile’ delivery network in theU.S. and our technology tools and systems. Velocity will gain increased in-bound deliveryvolumes and be able to offer its U.S. retail customers a fully integrated solution providing 100%end-to-end, package-level visibility from factory door to store floor,” Wasik pointed out. VelocityExpress has some 150 locations across the US and uses about 5,500 independent contractors forcollection and delivery.
Velocity Express also announced operating results for the second quarter and six monthperiod. Revenue for the quarter ended December 29, 2007 fell to $86.1 million from $102.3 millionin the same period one year earlier. This was due to the loss of two significant contracts with afinancial institution and Office Depot, the end of unfavourable contracts inherited from the mergerwith CD&L, and the generally slow economic environment, which combined more than outweighed newcustomer acquisitions.
However, the company succeeded in reducing its Q4 operating loss to $3.9 million from $8.7million one year earlier. The net loss was $8.9 million compared to $13.4 million one year earlier.
